A New Chapter for Investment in Ghana
Competition for investment has become more intense than ever. Investors today look beyond opportunities and incentives. They seek destinations with predictable regulations, efficient institutions, reliable public services and strong legal protection – complemented by robust infrastructure, a future-ready talent pool, and unwavering macroeconomic stability.
Against this backdrop, the Government of Ghana enacted the Ghana Investment Promotion Authority (GIPA) Act, 2026 (Act 1173) to modernise its investment framework and respond to the country’s evolving development priorities. Signed into law in July 2026, Act 1173 repeals and replaces the Ghana Investment Promotion Centre Act, 2013 (Act 865) with a comprehensive legal framework to promote and facilitate investment, support both local and foreign investments, and align Ghana’s investment regime with domestic reforms, the African Continental Free Trade Area (AfCFTA) and international best practice. By embedding provisions for sustainable investment, technology transfer, outward Foreign Direct Investments (FDI), and social inclusion, Act 1173 significantly strengthens investor confidence and bolsters Ghana’s competitiveness as a regional investment hub.
Resetting Ghana’s Investment Regime
The enactment of Act 1173 is a significant milestone under President John Dramani Mahama’s Reset Agenda, which places the private sector at the centre of Ghana’s economic transformation. President Mahama is a reform-minded leader with a proven record of modernising Ghana’s investment climate. During his first term in office, his administration oversaw the enactment of the Ghana Investment Promotion Centre Act, 2013 (Act 865), which modernised Ghana’s investment regime. In his second term, he has built on that legacy through the Ghana Investment Promotion Authority Act, 2026 (Act 1173). The new law strengthens Ghana’s ambition to become the preferred destination for investment in Africa. It introduces a number of important reforms that reshape the way investment is promoted, facilitated and regulated in Ghana.
Building A Stronger Investment Institution
A key highlight in Act 1173 is the transformation of the Ghana Investment Promotion Centre (GIPC) into the Ghana Investment Promotion Authority (GIPA). Far beyond a mere name change, this transition reflects a significantly expanded institutional mandate and broader functions. In addition to the traditional investment promotion and facilitation, the Authority is now responsible or rather, mandated to promote outward investment, facilitate and regulate technology transfer, coordinate policies, operate the One-Stop Shop, and administer a statutory Investor Grievance Mechanism (IGM). The Authority also acts as Ghana’s national focal institution for the AfCFTA Protocol on Investment.
Act 1173 further strengthens the Authority’s institutional governance through an expanded Board with broader representation from key public institutions involved in investment administration. These, among other institutional reforms, are intended to improve decision-making, strengthen institutional coordination and ensure that the Authority is better equipped to rapidly respond to the evolving needs of investors.
Creating a More Competitive Investment Environment
The Act makes it easier to establish a business in Ghana by removing key entry barriers. Particularly, it abolishes the blanket minimum capital requirements for joint ventures (JVs) and wholly foreign owned (WF) enterprises, that previously mandated foreign investors to invest at least US$200,000 and US$500,000 respectively. This reform opens Ghana’s investment landscape, welcoming a wider range of investors, especially capable small and medium-sized enterprises (SMEs), technology startups and knowledge-based businesses, among others, where strategic expertise and intellectual property outweigh blanket capital requirements.
Furthermore, the Act reduces the minimum capital requirement for trading enterprises (WF or JVs) from US$1 million to US$500,000. It also replaces the rigid mandate to employ at least twenty skilled Ghanaians with a more flexible workforce ratio requiring at least 75 per cent of skilled employeesto be Ghanaians. Together, these reforms lower barriers to market entry while ensuring that foreign investment continues to drive local employment.
The removal of the minimum capital requirement, however, is not a liberalisation of the economy at the expense of local businesses. All investment remain subject to the applicable sector-specific laws, licensing requirements and regulatory standards administered by the relevant authorities.
It is important to note that the Act preserves the activities reserved for Ghanaian citizens and wholly Ghanaian-owned enterprises under the previous legislation. The only notable changes relate to removal of references to printing of recharge cards and gaming activities.
Act 1173 also requires the Authority to act as a One-Stop shop to promote, facilitate and regulate investments, while improving access to information, enhancing transparency and strengthening the ease of doing business. The aim is to reduce administrative bottlenecks and provide investors with a more efficient and seamless experience.
Promoting Ghanaian Enterprises
For the first time, the Authority has a clear statutory mandate to promote and facilitate outward investment by Ghanaian enterprises. This initiative aims to accelerate the expansion of local businesses into regional and global markets, strengthen their international competitiveness and eventually, support the emergence of homegrown Ghanaian multinational enterprises.
Targeted Incentives for High-Impact Investment
Under the repealed Act, registered enterprises were entitled to the incentives available under Ghana’s tax and customs laws, while the Board could negotiate additional incentive packages for strategic investments and recommend priority investment areas with Presidential approval. However, Act 1173 introduces two distinct tax incentive frameworks under the Exemptions Act, 2022 (Act 1083): industry-specific tax incentives and special tax incentives for strategic investments. Industry-specific tax incentives are to be established by the Minister responsible for Finance, in consultation with the Authority, through a Legislative Instrument made under the Exemptions Act, 2022 (Act 1083) to target key growth sectors. Conversely, special tax incentives, are reserved exclusively for strategic investments. For the latter, Cabinet is mandated to designate priority investment areas, while the Authority is required to publish the eligibility criteria for strategic investments within thirty (30) days of such designation in the Gazette, on the Authority’s website, and in a daily newspaper of wide circulation. The Authority is further mandated to process applications and communicate its decision on whether an enterprise qualifies as a strategic investment within thirty (30) days of receipt of the application. This dual framework creates a more transparent, predictable and expedited process aligned with Ghana’s national economic priorities.
Citizenship by Investment
Additionally, the Act introduces a provision on citizenship by investment. While the legislation does not itself establish such a programme, it mandates the appropriate legal framework to be established in consultation with the Ministry of Interior and in accordance with the 1992 Constitution and relevant laws.
Enhanced Protection for Investors
The new Act maintains Ghana’s long-standing commitment to protecting investments against unlawful expropriation. Property may only be acquired for a public purpose and in accordance with the Constitution and relevant laws. Investors are entitled to prompt, fair and adequate compensation with the right of access to the High Court to determine their interest or rights as well as the amount of compensation to which they are entitled. Importantly, the Act extends this protection beyond direct acquisition of property to include measures that have an effect equivalent to expropriation. Additionally, in a key enhancement to investor protection, the Act provides compensation for loss of investments resulting from wars, riots, or civil strife, etc. on equal terms with domestic investors – aligning with National Treatment standard under the AfCFTA Protocols and international treaties.
The legislation also preserves the right of registered enterprises to transfer dividends, profits, loan repayments, fees and charges under Technology Transfer Agreements and proceeds from the sale or liquidation of an investment through authorised banking channels, subject to Ghana’s foreign exchange laws.
Furthermore, it retains the principle of non-discrimination by ensuring fair treatment for investors while preserving the Government’s right to regulate in the public interest.
A Proactive Framework for Investor Grievance Resolution
A major innovation is the establishment of an Investor Grievance Mechanism. Rather than requiring investors to navigate multiple public institutions when problems arise, the Authority now serves as the first point of contact for addressing investment-related grievances. Investors may submit complaints concerning the actions or decisions of public institutions, and the Authority is required to engage the relevant agencies to facilitate a timely resolution.
The mechanism provides investors with a clear channel for resolving concerns and helps address issues before they escalate into formal disputes, provided the matter is not already before a court, undergoing alternative dispute resolution, or subject to a formal internal resolution process within a government institution.
The Act also encourages the amicable settlement of disputes while preserving investors’ right to seek redress through the courts or any dispute resolution mechanism provided under an applicable investment agreement or agreed by the parties to an investment agreement.
Supporting Skills Development and Technology Transfer
Another important reform is the expansion of the expatriate quota regime. The Act gives investors greater flexibility to recruit the specialised expertise needed to establish and expand their businesses, while supporting the transfer of knowledge and skills to Ghanaians. Depending on the size of the investment, registered enterprises may now qualify for up to twelve automatic expatriate quotas, compared with a maximum of four under the previous law.
Technology transfer has also received greater attention under the new law. While the previous law focused mainly on the registration of Technology Transfer Agreements, Act 1173 gives the Authority a broader mandate to promote and regulate them in support of innovation, local capacity development and sustainable economic development.
Promoting Sustainable Investment
For the first time, the Act introduces a comprehensive framework on investor responsibilities. Investors are mandated to comply with Ghana’s laws, respect labour standards, protect the environment and conduct their business responsibly. They are also required to uphold human rights, promote gender equality, strengthen corporate governance, support local communities, and contribute to technology transfer, skills development and knowledge sharing. These provisions do not diminish investor protection. Rather, they reflect a more balanced investment framework in which investor rights are accompanied by responsibilities that support inclusive and sustainable economic growth.
A More Effective Compliance Framework
Act 1173 requires enterprises to renew their registration annually and obtain the Authority’s written approval before establishing any branch. Further, the Authority is empowered to monitor the implementation of investment projects to ensure investors adhere to the commitments made during registration.
To enforce these requirements, the Act introduces administrative penalties for specified regulatory breaches, including failure to renew an enterprise’s registration, the misuse of benefits or incentives granted under the Act, participation by non-citizens in activities reserved for Ghanaians, utilizing unregistered or non-compliant technology transfer agreements, and the establishment or operation of a branch without the Authority’s prior written approval. The introduction of administrative penalties provides the Authority with an additional regulatory tool to enforce compliance and complements the criminal sanctions provided elsewhere in the Act.
Supporting this oversight, Act 1173 establishes a National Investment Registry and reporting system. This will strengthen the Authority’s ability to track the performance of local and foreign investments, undertake annual compliance reviews, and generate reliable data on investment to support evidence-based policymaking.
Conclusion
The GIPA Act, 2026 (Act 1173) provides a modern legal framework that responds to the realities of today’s global investment environment and supports Ghana’s long-term development ambitions. It also strengthens the country’s position to maximise the opportunities presented by the AfCFTA and to compete more effectively for quality investment. As global competition for investment continues to intensify, the Act provides a strong foundation for Ghana to remain an attractive destination for investors seeking long-term opportunities in Africa.
By Mr. Simon Madjie, Chief Executive Officer, Ghana Investment Promotion Authority (GIPA)
